Kentucky's jobless rate falls again, but the reasons aren't all good

Kentucky's unemployment rate remained at less than 10 percent in June, falling to 9.6 percent from 9.8 percent in May. May had marked the first time in more than two years that the economic indicator was less than 10 percent.

Unfortunately, while the state's "economy regained some footing," the reasons for the improvement weren't all positive, said Justine Detzel, chief labor market analyst for the Office of Employment and Training. "A portion of the decline in the unemployment rate is attributed to a drop in the civilian labor force as fewer new entrants started job searches," she said in a statement.

The state continued to lag the national rate, which was 9.2 percent in June, up from 9.1 percent in May.

In June, the state gained 1,600 non-farm jobs across five of the 11 major economic sectors. Five others saw declines, and one stayed the same.

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Detzel said the gains came as factories ramped up production as parts availability was restored. Many automotive-related factories were idled earlier this year because they were not receiving parts manufactured in Japan, which was devastated by an earthquake and tsunami.

The trade, transportation and utilities sector saw the number of jobs increase by 1,000, while the construction sector added 400 workers, and mining and logging jumped by 100.

The most job losses came in the other services sector, which shed 1,000 workers.

"This marks the second consecutive month of declining employment in the other services sector," Detzel noted. "The contraction in this sector is a sign of layoffs at commercial and industrial repair and maintenance companies."

Other sectors with declining employment were financial activities (700), government (300), professional and business services (100) and information (100).